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What Is VetPay? A Guide

Prashant Mehra
Contributor

Updated: Apr 18, 2024, 2:37pm

Johanna Leggatt
editor

Edited By

Editorial note: Forbes Advisor Australia may earn revenue from this story in the manner disclosed here. Read our advice disclaimer here.
What Is VetPay? A Guide

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Veterinary costs can often turn into a significant expense for pet owners in Australia. Recent data from insurance administrator PetSure has revealed that vet expenses have risen at a rate that exceeds the high inflation across the economy.

Since there are no Medicare or government subsidies available for pets, many pet owners turn to pet insurance to manage the challenge of rising vet bills. Others take out a loan through a service known as VetPay. Let’s take a closer look at how it works.

How Does It Work?

VetPay is a loan product aimed at helping pet owners fund their vet bills. Under the model, the loan provider directly pays the vet clinic for your pet’s treatment and then sets up a payment plan through which you can repay in instalments, typically over a six or 12-month period.

VetPay provides loan amounts between $500 and $15,000 for up to five years. Pet owners are required to pay an initial deposit of 10% for bills under $1000 and 20% for bills over that amount. Repayments are set up by way of a fortnightly debit of your bank account or credit card.

The company charges an annual fee of $69 and applies a steep interest rate of 18.4% per annum to the remaining amount after your deposit. It also charges a processing fee of $2.50 with each repayment. These fees and charges are added to your account and included in the fortnightly repayment. In addition, some vets may charge an administration fee for VetPay payments.

VetPay vs GapOnly Pet Insurance

Vet clinics generally offer a range of payment options, including both VetPay and GapOnly Insurance, so pet-owners sometimes can get confused between the two. However, there are major differences between them.

GapOnly refers to a simpler payment service that saves you from having to pay the full cost up-front and then making a claim to your insurer. Under this, pet owners only have to pay the ‘gap’ at the vet i.e. the difference between your pet’s vet bill and the claim benefit you’re entitled to under your insurance policy. You can read more in our guide to GapOnly.

On the other hand, VetPay is a loan product used by pet owners to settle their pet bills. This allows you to pay for your pet’s treatment over time by paying an initial deposit upfront and settling the balance through fortnightly payments. It includes annual fees as well as high interest costs and charges.

GapOnly can be used only for eligible payments under your pet insurance policy, which generally tend to be for procedures or hospitalisations and not for routine consultations. On the other hand, VetPay can be used to settle all pet treatment expenses.

GapOnly, backed by insurance administrator PetSure, is available on policies of more than 20 partner insurance providers and also has a wide network of participating vet clinics. VetPay is a product from a single loan provider but is available at a wide network of participating vets.

How To Access VetPay

VetPay prescribes some minimum requirements to be eligible to receive the financing for your pet bills. These include:

  • You need to be a pet owner.
  • You are 18 years old or over and can provide a current Driver’s License, Medicare card, passport or similar document.
  • You are an Australian citizen or Permanent Resident.
  • You have a good credit history.
  • You meet VetPay’s credit requirements.

The loan provider has a network of participating vets throughout Australia. Pet-owners need to complete a pre-approval application to find out whether they are eligible to use the finance. The pre-approval is generally valid for six months.

How to Find a Participating Clinic

In order to use VetPay, you would need to ensure that your vet clinic offers the service.

VetPay states on its website that its service is available at more than 1800 vet clinics across the country.

To find a participating clinic, you can visit the VetPay website and use their Finder tool. They also have a list of all participating clinics online.

How To Apply for Vet Pay

Pet owners need to fill out an online pre-approval application to find out if they are eligible for VetPay finance. All applicants are subject to a credit check and financial assessment, which may require submitting ID documents and copies of payslips or bank statements.

Once approval is confirmed and a VetPay account opened, you simply have to get your clinic to add the pets treatment cost to your account.

VetPay will then send a confirmation that it will cover the costs of the treatment and email your fortnightly payment plan.

Additional treatment costs may be added to your account as long as fortnightly payments are approved and you are within your credit limit.

Fees and Charges Associated with VetPay

VetPay provides a loan for existing pet owners seeking financing for veterinary treatment or associated costs for a family pet. It then sets up a payment plan through which you can repay in fortnightly instalments, typically over a six or 12-month period.

The company charges an annual fee of $69 and applies a steep interest rate of 18.4% per annum to the remaining amount after your initial 10% or 20% deposit.

It also charges a processing fee of $2.50 with each repayment. These fees and charges are added to your account and included in the fortnightly repayment.

VetPay also charges merchant fees from its participating vet clinics, some of whom may recover this from pet owners in the form of an administration fee for VetPay payments.

In 2022, consumer group CHOICE criticised VetPay for hitting pet owners with expensive interest rates and a raft of fees and charges. It also called on VetPay to stop marketing their loans as affordable.

VetPay or Pet Insurance?

The costs of pet ownership, including vet bills, can add up quickly. Data shows owners in Australia can expect to spend around $1,000 a year on their pet’s health and wellness expenses. Since Medicare is not available for animals, owners often need assistance to cover their vet bills.

Whether you choose an option such as pet insurance to cover your vet expenses or rely on a short-term loan such as VetPay depends on your preferences, financial situation and individual circumstances. However, while making a decision, it is best to evaluate the options on a set of comparable parameters:

  1. Cost: Pet insurance can prove beneficial even during tough economic times, because it’s designed to cover the big-ticket costs you may not otherwise be able to afford. However, monthly premium costs can set you back substantially, depending on the level of cover. Even in the case of VetPay payment plan, costs include a steep interest rate as well as annual charges and fees.
  2. Peace of mind: Having pet insurance means that if your pet meets with an accident or needs treatment, some or most of the financial burden will be lifted. VetPay also has a similar purpose, and is specifically designed to help you pay for veterinary expenses without the worry of high upfront costs.
  3. Coverage: What your pet insurance covers depends on the type of policy so it’s important to compare the excess amount, proportion of treatment costs covered, annual claim limit, age restrictions, pre-existing illness exclusions, etc. Also important to remember that most policies will pay for procedures or hospitalisations but not for routine consultations. On the other hand, VetPay can be used to settle all pet treatment expenses so provides more flexibility to the pet owner.
  4. Claims process and availability: Pet owners have the option to choose from variety of insurers and policy levels, so can shop around for the best deal and find the right level of cover for your pet. However, the claims process can be cumbersome as it often involves making upfront payment and then filing a reimbursement claim from the insurer. GapOnly insurance policies have resolved this issue to some extent.

VetPay is available through a single provider so you cannot really shop around to reduce the cost. On the other hand, the application process is quite simple and can be completed online in a matter of minutes to set up the account.

Frequently Asked Questions (FAQs)

What are the minimum requirements for VetPay?

VetPay financing is available to Australian citizens or Permanent Residents who are existing pet owners, at least 18 years old, have a good credit history and clear the provider’s credit checks and financial assessment.

Can you pay later for a vet bill?

Most vet clinics in Australia offer a variety of payment options to help ease the financial stress for pet owners. These include GapOnly insurance, loan products such as VetPay, or buy-now-pay-later plans such as AfterPay and ZipPay.

How long does it take to get approved for vet pay?

VetPay says it will generally process an application within 15 minutes and contact the pet owner by email, or phone if it requires further information.

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Prashant Mehra Contributor

Prashant Mehra is a freelance journalist based in Sydney. He has more than 20 years of international experience covering financial news, including with Reuters and the Australian Associated Press (AAP). He writes about business, markets, the economy and investing.